Wednesday, February 24, 2010

$18.5 Million Settlement for Illegal Off-Label Marketing of Anti-Psychotic Drug

Eli Lilly & Co. has agreed to pay $18.5 million to the State of Arkansas to settle a lawsuit alleging that the company engaged in “illegal and fraudulent off-label marketing of Zyprexa,” an anti-psychotic drug.

The company allegedly promoted the drug for a variety of unapproved uses, including treatment of dementia, aggression, depression and sleep disorders, as well as use in children.

The Arkansas state Medicaid trust fund will receive the bulk of the settlement, $15 million.

Click here to read the full article, “Ark. announces $18.5M settlement with Eli Lilly"

Weaver of Ballistic Fabrics Will Pay $4 Million for Sale of Defective Material

A $4 million settlement has been reached between the U.S. Government and Lincoln Fabrics Ltd. in a False Claims Act lawsuit stemming from the company’s production of a defective material used in bullet-proof vests.

When the vests were exposed to heat and humidity, the material, called Zylon, apparently lost its ballistic capability. Allegedly, Lincoln was aware of the defect, yet continued to sell the material for use in ballistic armor.

This lawsuit is part of an ongoing investigation of the body armor industry.

Click here to read the full article, “Canadian Firm and U.S. Subsidiary to Pay $4 Million to Settle Lawsuit in Connection with Sale of Defective Bullet-Proof Vests"

Thursday, February 18, 2010

Teva Announces $315 Million False Claims Settlement

Several subsidiaries of Teva Pharmaceuticals Ltd. have agreed to settle lawsuits brought against them under the Federal False Claims Act and corresponding state statutes in Texas, Florida, and California.  The lawsuits were brought by a qui tam plaintiff, Ven-A-Care, a pharmacy located in Key West, FL.

The lawsuits allege that Teva, along with other pharmaceutical manufacturers, used practices to inflate reimbursements for drugs from Medicaid as well as other programs.  Teva will pay approximately $315 million to settle the lawsuits brought against them.

Click here to read the entire article, “Teva Announces Settlement in Principle Regarding Certain Drug Pricing Lawsuits"

Friday, February 05, 2010

New NJ Legislation Strengthens False Claims Act

The New Jersey legislature has passed a bill amending the state’s False Claims Act, aligning it with the Deficit Reduction Act. This will strengthen the recovery efforts for Medicaid fraud cases.

Click here to read the full article, “Anti-fraud bill now law"

Qui Tam Lawsuit Ends in $3.76 Million Resolution for Alleged Medicare Fraud

Medical device manufacturer, Atricure Inc., will pay the United States $3.76 million to resolve claims of Medicare fraud and violations of the Food, Drug and Cosmetic Act.

Allegations included promoting its medical devices for uses which are not approved by the U.S. Food and Drug Administration. The West Chester, Ohio-based company was also accused of paying kickbacks and promoting unnecessary and expensive heart surgery using devices developed by the company.

The case began with a qui tam, or whistleblower, lawsuit by an unnamed private citizen, who will receive $625,000 from the total settlement.

Click here to read the full article, “Atricure to Pay U.S. $3.76 Million to Resolve Medicare Fraud Allegations"

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